ISO Currency Codes

ISO (International Organization for Standardization) set a code for every single currency out there. They are thus easier to recognize and are used by most entities today, including forex trading, money markets and travel companies. ISO stands out as an international federation that incorporates many national standard bodies. Besides the standardization implemented in currencies, ISO is also responsible for codes used for various precious metals like platinum, silver and gold.
ISO Currency Codes – Understanding the Basics
We have to know that currency symbols and currency codes are not the same thing. $ is the symbol used for the dollar while USD is its corresponding ISO code. All ISO currency codes are of 3 characters. In most situations the first two are a marker of the country’s code while the third one is an initial of the actual currency, even if this cab ne different. As an example, in UK we see GBP, which basically stands for Great Britain Pound. You will need to know the most popular trade currency codes in order to properly work in the forex market. They are:
• EUR = Euro
• USD = US Dollar
• AUD = Australian Dollar
• CAD = Canadian Dollar
• SGD = Singapore Dollar
• RUB = Russian Ruble
• SEK = Swedish Krona
• JPY = Japanese Yen
• GBP = Great Britan Pound
Currency Rates and ISO Currency Codes
Currency rates are expressed in forex with the use of currency codes. Because of the fact that we work in currency pairs the rates that we will see will basically form a 6-letter word that contains the 3 characters for both currencies. The rate will be expressed in the units of the second unit that make up the first unit. To put it simple, when we are dealing with EUR – USD we will see the code “EURUSD”. If we see that the rate is 1.38 it basically means that we need 1.38 dollars to buy 1 EUR. In order to buy a dollar we would need 1/1.38 EUR.